“If incoming data are consistent with labor market conditions strengthening and inflation making progress toward our 2-percent objective, as I expect, further gradual increases in the federal funds rate are likely to be appropriate,” said Yellen in her last public speech before the Fed’s June policy meeting next week.

However, she did not give a time-frame for raising interest rates like she did in May, which was interpreted by many market observers as “dovish”.

The dollar index, which measures the greenback against six major peers, was down 0.25 per cent at 93.591 in late trading.